DC-2 Examination Information

Defined Contribution Administrative Issues – Compliance Issues

> DC-2 Syllabus [PDF]
> DC-2 Course Overview
> 2009 Education and Examination (E&E) Program Changes (ERPA Designation Impact)
> Exam Requirements & Procedures
> Exam Registration & Fees
> Required Reading and Supplementary Study Tools
> Study Guide References & Errata
> Subject Matter
> Deadlines & Fees
> Grading Process
> Register online

Related Links : Register for Exams : Candidate Corner : Study Guide References print page

Course Overview

Over the past 15 to 20 years, 401(k) plans have become an enormously popular plan design. These plans permit pre-tax retirement savings by both the employer and the employee. While these plans provide a great deal of flexibility when it comes to providing retirement plan benefits, they also have complex rules regarding plan qualification and nondiscrimination requirements.

This course begins with 401(k) basics like elective deferral limits and catch-up contributions and moves to coverage and nondiscrimination rules applicable to 401(k) plans. Candidates will learn how to correct failed ADP and ACP tests along with some of the more intricate rules associated with these nondiscrimination tests like double-counting limits and shifting techniques.

Candidates will also learn how to design a plan to avoid these nondiscrimination tests, the safe harbor 401(k) plan, and the many requirements applicable to such plans.

Along with the increase in 401(k) plans comes the clamor from participants to be able to direct their investments. Candidates will learn how compliance with ERISA §404(c) may help a fiduciary limit liability for investment choices made by participants.

Candidates will also be exposed to the different types of allocation methods and learn how different allocation methods satisfy nondiscrimination requirements. The emphasis here is on permitted disparity allocations but candidates will also see how non safe harbor plan designs may use general (rate group) testing to satisfy nondiscrimination. The course also covers cross-testing as a method of satisfying nondiscrimination requirements.

Of course, the ultimate goal of a qualified plan is to provide participants with retirement income. Candidates will learn about the various types of distributions, including participant loans, available to plan participants along with the taxation and reporting rules applicable to such transactions.

Finally, candidates will learn about the ASPPA Code of Professional Conduct and be able to identify ethical dilemmas that may be faced by retirement plan professionals.

2009 Education and Examination (E&E) Program Changes (ERPA Designation Impact)

Please refer to the 2009 Education and Examination (E&E) Program Changes webpage for information on the new and exciting enhancements to ASPPA’s educational programs.

Exam Requirements & Procedures

It is presumed that a candidate sitting for the DC-2 examination will have the knowledge of material covered in the Pension Administrator (PA) or Retirement Plan Fundamentals (RPF) series and the DC-1 examination. All required reading material is listed in each topic which can be found by downloading the syllabus. Candidates have two and one-half (2 ½) hours to complete this 65 multiple choice examination. Candidates will receive a grade immediately upon completing the DC-2 exam at the testing center. The use of a calculator will be permitted if it conforms to the required specifications.

Exam Registration & Fees

It is the candidate’s responsibility to review all of ASPPA’s exam policies and procedures which can be found in the ASPPA Program Catalog or on Candidate Corner. You will also find additional helpful information such as test taking tips, directions for contacting your nearest Prometric testing site to schedule examinations, exam windows and dates and much more.

Exam Registration - Register online or download the Exam Registration Form and follow the directions on the form to fax or mail your registration. Confirmation e-mails will be sent to candidates beginning approximately eight weeks prior to the opening of an exam window. Once you receive your confirmation e-mail from ASPPA, you will need to contact Prometric to schedule your proctored exam appointment. Detailed instructions on scheduling your appointment will be included in the confirmation e-mail. Exams are given at Prometric Testing Centers. It is the candidate’s responsibility to schedule an exam. We strongly recommend you schedule an appointment upon receipt of the confirmation letter as testing centers fill up quickly. To find a Prometric Testing Center visit http://www.2test.com.

Exam Fees - To qualify for early registration, registration forms accompanied by the early registration fee must reach the ASPPA office no later than April 17 for the spring examinations and September 19 for the fall examinations. To qualify for final registration, registration forms accompanied by the final registration fee must reach the ASPPA office no later than May 14 for the spring examinations and October 31 for the fall examinations. There is a non-refundable $199 early/$259 final registration fee per exam for members and a $225 early/$285 final fee per exam for nonmembers. For more information visit the Exam Schedule & Fees page.

Required Reading and Supplementary Study Tools

Unless noted all study materials can be ordered by downloading the Publications Order Form and following the instructions to phone, fax or mail your order form and payment. You can also order your publications using the ASPPA Bookstore.

Required Reading
Defined Contribution Plans Volume 2: 401(k) Plans and Intermediate Administration Topics, 2nd Edition. Arlington, VA: ASPPA.

Table of Contents
Chapter 1: 401(k) Basics
Chapter 2: 401(k) Coverage and Nondiscrimination
Chapter 3: Correction of Failed ADP/ACP Tests
Chapter 4: Special Coverage and ADP/ACP Testing Rules
Chapter 5: Safe Harbor 401(k) and 401(m) Plans
Chapter 6: ERISA §404(c)
Chapter 7: Allocation Methods
Chapter 8: Distributions
Chapter 9: Taxation
Chapter 10: Participant Loans
Chapter 11: ASPPA Code of Professional Conduct

To order this publication, visit our online bookstore or download the publication order form. Please refer to the 2008 Publications Order Form for publication listings and prices.

Supplementary Study Tools
The study tools below are not required preparation for the DC-2 examination. They are offered as additional study aids and require separate purchase and/or registration fees.

2007 DC-2 Practice Exam – available for $25 online through the online bookstore or download the publication order form. Please note this is the 2007 DC-2 practice examination; if you ordered the 2007 practice exam last year you do not need to reorder this practice exam.

2007 DC-2 Webcourse - It is expected that webcourse registrants preparing for an examination thoroughly study the topics covered in the required reading for the corresponding examination—outlined in the examination syllabus. The webcourse sessions should not be used as a substitute for these materials.

Study Guide References & Errata

For updates to ASPPA’s publications and examinations please visit: http://www.asppa.org/education/ed_study_guide_updates.htm. Please stop by regularly as new updates are posted.

Subject Matter

The law and regulations that govern the operation and qualification of 401(k) plans, employer contribution allocation methods, and distribution issues in general, including:

• 401(k) basics
• 401(k) coverage and nondiscrimination
• Corrections of failed ADP/ACP tests
• Special ADP/ACP testing rules
• Safe harbor 401(k) and SIMPLE-401(k) plans
• ERISA §404(c)
• Defined contribution allocation methods
• Distributions
• Taxation
• Participant loans

Download and review the 2008 DC-2 syllabus for detailed information on topics covered on the exam, learning objectives, exam topic weightings, etc.

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American Society of Pension Professionals & Actuaries
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